Corruption Perceptions Index 2015

Corruption Perceptions Index 2015 Transparency International is a global movement with one vision: a world in which government, business, civil society and the daily lives of people are free of corruption. With more than 100 chapters worldwide and an international secretariat in Berlin, we are leading the fight against corruption to turn this vision into reality. www.transparency.org

Generous support for the 2015 Corruption Perceptions Index was provided by Ernst & Young. Not one single country, anywhere in the world, is corruption-free

Public sector corruption isn‘t simply about taxpayer money going missing. Broken institutions and corrupt officials fuel inequality and exploitation - keeping wealth in the hands of an elite few and trapping many more in poverty.

Based on expert opinion from around the world, the Corruption Perceptions Index measures the perceived levels of public sector corruption worldwide. Not one of the 168 countries assessed in the 2015 index gets a perfect score and two-thirds score below 50, on a scale from 0 (highly corrupt) to 100 (very clean). More than 6 billion people live in a country with a serious corruption problem.

The 2015 Corruption Perceptions Index clearly shows that corruption remains a blight around the world. But 2015 was also a year when people again took to the streets to protest corruption. People across the globe sent a strong signal to those in power: it is time to tackle grand corruption. “ José Ugaz, Chair, Transparency International

Access the full 2015 Corruption Perceptions Index at www.transparency.org/cpi The Global Picture

Score 0 25 50 75 100 Global highly corrupt very clean Average score 43

EU & Western Asia Pacific americas Europe 67 Average score 43 Average score 40 Average score Top: New Zealand (88) Top: Canada (83) Top: Denmark (91) Bottom: North Korea (8) Bottom: Haiti, Venezuela (17) Bottom: Bulgaria (41)

Middle East Eastern europe Sub-Saharan & North Africa 39 & Central asia 33 Africa 33 Average score Average score Average score Top: Qatar (71) Top: Georgia (52) Top: Botswana (63) Bottom: Sudan (12) Bottom: Turkmenistan (18) Bottom: Somalia (8)

less than 50 = serious corruption problem 2 in 3 53% 100% 6 billion+ countries worldwide of G20 countries score of BRICS countries people live in countries with a score below 50 less than 50 score less than 50 serious corruption problem Country contrast

Top scorers denmark finland 91 90

Lowest scorers north korea somalia 8 8

What’s changed? Comparison of 2012 and 2015 performance

Countries that have improved include Countries that have declined include Greece Australia Senegal Brazil UK Spain Turkey 168 countries. 168 scores. how does your country measure up? The perceived levels of public sector corruption in 168 countries/territories around the world.

Score Highly Very Corrupt Clean 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100 No data

RANK COUNTRY/TERRITORY SCORE 23 Chile 70 RANK COUNTRY/TERRITORY SCORE 66 Sao Tome 42 1 Denmark 91 23 Estonia 70 44 Rwanda 54 and Principe The FYR of 42 2 Finland 90 23 France 70 45 Jordan 53 66 Macedonia 3 Sweden 89 23 United Arab 70 45 Mauritius 53 66 Turkey 42 4 New Zealand 88 Emirates 45 Namibia 53 Bhutan 65 69 Bulgaria 41 5 Netherlands 87 27 48 Georgia 52 Botswana 63 69 Jamaica 41 5 Norway 87 28 48 Saudi Arabia 52 Portugal 63 71 Serbia 40 7 Switzerland 86 28 50 Bahrain 51 Poland 62 72 El Salvador 39 8 Singapore 85 30 50 Croatia 51 Taiwan 62 72 Mongolia 39 9 Canada 83 30 50 Hungary 51 Cyprus 61 72 Panama 39 10 Germany 81 32 50 Slovakia 51 32 Israel 61 72 Trinidad and 39 10 Luxembourg 81 54 Malaysia 50 Tobago 32 Lithuania 61 10 United Kingdom 81 55 Kuwait 49 76 Bosnia and 38 Slovenia 60 13 Australia 79 35 56 Cuba 47 Herzegovina Spain 58 13 Iceland 79 36 56 Ghana 47 76 Brazil 38 Czech Republic 56 15 Belgium 77 37 58 Greece 46 76 Burkina Faso 38 Korea (South) 56 16 Austria 76 37 58 Romania 46 76 India 38 Malta 56 16 United States 76 37 60 Oman 45 76 Thailand 38 Cape Verde 55 18 Hong Kong 75 40 61 Italy 44 76 Tunisia 38 Costa Rica 55 18 Ireland 75 40 61 Lesotho 44 76 Zambia 38 Latvia 55 18 Japan 75 40 61 Montenegro 44 83 Benin 37 Seychelles 55 21 Uruguay 74 40 61 Senegal 44 83 China 37 22 Qatar 71 61 South Africa 44 RANK COUNTRY/TERRITORY SCORE 103 Moldova 33 RANK COUNTRY/TERRITORY SCORE 147 Democratic 22 83 Colombia 37 107 Argentina 32 123 Madagascar 28 Republic of the Congo 83 Liberia 37 107 Belarus 32 123 Timor-Leste 28 147 Myanmar 22 83 Sri Lanka 37 107 Côte d´Ivoire 32 130 Cameroon 27 150 Burundi 21 88 Albania 36 107 Ecuador 32 130 Iran 27 150 Cambodia 21 88 Algeria 36 107 Togo 32 130 Nepal 27 150 Zimbabwe 21 88 Egypt 36 112 Honduras 31 130 Nicaragua 27 153 Uzbekistan 19 88 Indonesia 36 112 Malawi 31 130 Paraguay 27 154 Eritrea 18 88 Morocco 36 112 Mauritania 31 130 Ukraine 27 154 Syria 18 88 Peru 36 112 Mozambique 31 136 Comoros 26 154 Turkmenistan 18 88 Suriname 36 112 Vietnam 31 136 Nigeria 26 154 Yemen 18 95 Armenia 35 117 Pakistan 30 136 Tajikistan 26 158 Haiti 17 95 Mali 35 117 Tanzania 30 139 Bangladesh 25 158 Guinea-Bissau 17 95 Mexico 35 119 Azerbaijan 29 139 Guinea 25 158 Venezuela 17 95 Philippines 35 119 Guyana 29 139 Kenya 25 161 Iraq 16 99 Bolivia 34 119 Russia 29 139 Laos 25 161 Libya 16 99 Djibouti 34 119 Sierra Leone 29 139 Papua New 25 163 Angola 15 99 Gabon 34 123 Gambia 28 Guinea 163 South Sudan 15 99 Niger 34 123 Guatemala 28 139 Uganda 25 165 Sudan 12 103 Dominican 33 123 Kazakhstan 28 145 Central African 24 Republic 166 Afghanistan 11 Republic 123 Kyrgyzstan 28 146 Congo Republic 23 167 Korea (North) 8 103 Ethiopia 33 123 Lebanon 28 103 Kosovo 33 147 Chad 22 167 Somalia 8 americas photo: © Mauro Pimentel photo: Average score: 40/100 Top scorer: Canada (83) Lowest scorer: Haiti, Venezuela (17)

81% of countries score less than 50

In brief We witnessed two remarkable trends in the Americas in 2015: the uncovering of grand corruption networks and the mass mobilisation of citizens against corruption. It’s no surprise that Brazil – which faced its largest-ever corruption scandal around Petrobras – is this year’s biggest index decliner in the Americas, yet there and elsewhere we saw corruption investigations against people who looked untouchable only 12 months ago. The challenge now is to tackle the underlying causes. The citizens who took to the streets demanded an end to corruption for good – only serious institutional reform will make that happen.

The good The fight against impunity may be far from over, but 2015 sent a strong warning to the corrupt. As three members of Honduras’s elite Rosenthal clan were charged with money laundering and Guatemala’s president was jailed for reportedly taking bribes, even the most powerful figures found they could no longer rely on their cash and connections to protect them. Scores may not have improved dramatically, but it’s worth remembering that marginal upward movement or stagnation can also be the result of corruption becoming more visible and talked about.

The bad But arrests aren’t enough. However welcome, prosecuting existing politicians won’t stop new corrupt individuals getting rich at the expense of citizens. Many countries low down the index have ample natural resources – take Argentina, Mexico or oil-rich Venezuela, the region’s lowest scorer – yet long-standing corruption has led to a desperate lack of investment in security, education and health. Until these weaknesses are addressed, corruption will continue to be the norm and citizens’ quality of life will not improve.

What needs to happen Governments need to ensure real and systemic reform – starting with freeing judiciaries from political influence and creating better regional cooperation between law enforcement to stop the corrupt hiding in different jurisdictions. Citizens, meanwhile, should continue their calls for change. In 2015 we saw ever more people connect the poor services they receive with the illicit enrichment of a few corrupt individuals. These people need to keep up their pressure on leaders, and demand the accountable, well-functioning institutions they deserve.

By Alejandro Salas, Director for the Americas Asia Pacific photo: © David Rengel photo: Average score: 43/100 Top scorer: New Zealand (88) Lowest scorer: North Korea (8)

67% of countries score less than 50

In brief If there was one common challenge to unite the Asia Pacific region, it would be corruption. From campaign pledges to media coverage to civil society forums, corruption dominates discussion. Yet despite all this talk, there’s little sign of action. Between Australia’s slipping scores and North Korea’s predictably disastrous performance, this year’s index shows no significant improvement. Has Asia Pacific stalled in its efforts to fight corruption?

The good The public desire for change is huge. In India, Sri Lanka and elsewhere, we’ve seen a host of governments coming to power on anti-corruption platforms. As corruption continues to dominate media coverage across and beyond the region, increasing interest in the issue has sparked a raft of new research into both public and private sector corruption.

The bad So why this picture of zero progress? Despite boastful efforts on petty corruption, Malaysia’s 1MBD scandal brought the crux of the challenge into sharp focus: is political leadership genuinely committed to fighting corruption throughout society? The Malaysian prime minister’s inability to answer questions on the US$700 million that made its way into his personal bank account is only the tip of the iceberg.

In India and Sri Lanka leaders are falling short of their bold promises, while governments in Bangladesh and Cambodia are exacerbating corruption by clamping down on civil society. In Afghanistan and Pakis- tan a failure to tackle corruption is feeding ongoing vicious conflicts, while China’s prosecutorial approach isn’t bringing sustainable remedy to the menace. This inability to tackle root causes holds true across the region – witness, for example, Australia’s dwindling score in recent years.

What needs to happen Reversing corruption is clearly not solely down to governments, but they’re the ones with the largest role and the power to create enabling environments for others. This year’s poor results demand that leaders revisit the genuineness of their efforts and propel the region beyond stagnation. They must fulfil promises, and ensure efforts aren’t undermined in practice. Anti-corruption commissions are a prime example here: while their creation across the region is commendable, ongoing political interference and inadequate resources has meant many are unable to fulfil their mandate. This has to be addressed.

By Srirak Plipat, Director for Asia Pacific Europe & Central Asia photo: © Mehman Huseynov photo: Average score: 54/100 Top scorer: Denmark (91) Lowest scorer: Turkmenistan (18)

44% of countries score less than 50

In brief While a handful of countries have improved, the general picture across this vast region is one of stagnation. Governments are willing to pass laws addressing corruption, yet enforcing them is a different matter. Also very worrying is the marked deterioration in countries like Hungary, FYR of Macedonia, Spain and Turkey. These are places where there was once hope for positive change. Now we’re seeing corruption grow, while civil society space and democracy shrinks.

The good Nordic countries score highly again – with Denmark, Finland, Sweden coming top three, and Norway not far behind. Yet we’ve seen big corruption cases in all four in 2015, including 13 Danish public employees arrested in a corporate bribery case; the mayor of Bergen, Norway’s second largest city, charged with bribery; Sweden’s partly state-owned TeliaSonera (in which Finland also has a minority stake) exiting Eurasian markets amid huge bribery allegations in Uzbekistan; and the ongoing trial of the former head of Helsinki police’s antidrug squad, charged with running a drug cartel of his own. Clearly there’s still work to be done.

The bad Corruption remains a huge challenge across the region, often going hand in hand with repression. In low-scorers Hungary, Poland and Turkey (which has plummeted in recent years along with Spain) politicians and their cronies are increasingly hijacking state institutions to shore up power, a worrying trend also affecting the Balkans. It’s even grimmer further down the index: in Azerbaijan, Kazakhstan, Russia, Uzbekistan and others, governments are restricting, if not totally stifling, civil society and free media – both proven to prevent corruption. Ukraine also does badly, as the government drags its heels on reform.

Western Europe’s relentless stream of banking scandals continued in 2015, as Deutsche Bank paid the largest Libor fine in history in a market-rigging scandal. More proof that the financial sector – banking in particular – is in dire need of reform.

What needs to happen Laws need real teeth. There’s anti-corruption legislation on the books everywhere – albeit patchy and imperfect – but a failure to implement and enforce is allowing the corrupt to operate with impunity. Govern- ments must tackle political corruption and reform the financial sector, and this can’t happen until laws and regulations are put into action and civil society and the media are genuinely free.

By Anne Koch, Director for Europe and Central Asia Middle East & North Africa photo: © Xinhua/Pan Chaoyue photo: Average score: 39/100 Top scorer: Qatar (71) Lowest scorer: Sudan (12)

68% of countries score less than 50

In brief Once again, three of the bottom 10 countries in this year’s index are from the MENA region – Iraq, Libya and Sudan. The ongoing devastating conflicts in these and other countries, such as Syria and Yemen, inevitably mean that any efforts to strengthen institutions and the state have taken a back seat. Yet security will only succeed long term if governments make a genuine break with cronyism and build trust with citizens. This will require a huge change in political will.

The good Kuwait, Jordan and Saudi Arabia all improved slightly on last year’s performance. For Saudi Arabia it’s the third year in a row where we’ve seen this kind of upward movement. Falling oil prices and a costly military intervention in Yemen have only strengthened the country’s austerity resolve, and there’s political recognition that solid structures and a clean business environment are needed to attract foreign investment. There’s also been some opening up with the increased participation of women in political life. The obvious and glaring issue remains the surge in executions in recent years as part of a wider crackdown on civil society and internal dissent.

The bad Most countries have maintained the same poor score, and some (Egypt, Libya, Morocco, Syria and Tunisia) have deteriorated slightly. Political corruption in particular remains a huge challenge. The rise of ISIS and the ensuing fight against terrorism have been used by many governments as an excuse to crack down on civil liberties and civil society. Far from helping, such an approach means that entrenched corrupt networks go unchallenged, often serving as yet further financial fodder for terrorism.

What needs to happen As many states feel confronted by existential threats, it is more important than ever to make combating corruption a top priority. Reduced civil liberties cannot be a casualty in any war against terrorism. As corruption is included in the new Sustainable Develop- ment Goals, enlightened decision-makers are starting to realise that development and anti-corruption must be interlinked, citizens urgently need their governments to move beyond conceptualisation to actually taking long-term action. And civil society must have the space to be a serious partner in the fight against corruption. Governments have demonstrated that they cannot do this alone.

By Ghada Zughayar, Director for Middle East and North Africa Sub-Saharan Africa photo: © Tony Maake Tony © photo: Average score: 33/100 Top scorer: Botswana (63) Lowest scorer: Somalia (8)

87% of countries score less than 50

In brief Sub-Saharan Africa faced a myriad of threats in 2015, from the Ebola epidemic to rising terrorism. Again and again we saw corruption exacerbate the causes of crises, and undermine the response. This year’s index presents a worrying picture – with 40 of 46 countries showing a serious corruption problem and no improvement for continent powerhouses Nigeria and South Africa. Indicators for rule of law and justice score particularly badly. While some governments are reducing risks for business, there’s little change for citizens – as systemic corruption leaves many countries struggling to uphold basic rule of law.

The good Progress is possible. Looking at the different areas covered by the index, we can see particular improvement around transparency in financial management – good news for the companies operating in the region. Overall a number of countries have all improved in recent years, notably Senegal, which has risen significantly since the government introduced a series of anti-corruption measures. Regional high- performer Botswana scores 63 out of 100 in the index. As the new Sustainable Development Goals act as a catalyst for strengthening governance, there’s hope other countries could follow.

The bad But corruption continues to deny citizens justice and security. As conflict-ridden Somalia lands at the bottom of the index again, many other countries are let down by a failure to uphold rule of law. Reinforcing our African public survey – which found police and courts have the highest rates of bribery – law enforcement isn’t always working to protect citizens. In many countries, including low-scorers Angola, Burundi and Uganda, we’re seeing a failure to prosecute corrupt public officials on the one hand, and intimidation of citizens who speak out against corruption on the other.

What needs to happen If corruption and impunity are to “be a thing of the past” as boldly stated by the African Union in Agenda 2063, “The Africa We Want”, governments need to take bold steps to ensure rule of law is the reality for everyone. Prosecuting corruption will restore faith among people who no longer believe in the institutions that are supposed to protect them. Transparency and accountability must go hand in hand when tackling corruption – as these results show, this is still far from the norm in Africa.

By Chantal Uwimana, Director for Sub-Saharan Africa Editor: Rachel Beddow Design: Kerstin Deinert

Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of January 2016. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts. Support us

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